Archive · 12 Aug 2026
US-based founder criticises Indian banks, says country 'credit-starved'
A man named Shreyans Jain, who runs a company, said India does not give out enough loans.
He called India a 'credit-starved country' in a post on X. He said banks in America will give big loans if you have a good credit score.
He said banks in India ask for many documents, like tax returns and bank statements.
Even then, he said, borrowers can be rejected for loans that are a small part of their income.
He thinks Indian banks should be more comfortable taking careful risks.
That way, he believes, more big companies could start in India.
Some people online agreed with him.
One person said they got a $2 million loan in America without a social security number.
Other people disagreed and said Indian banks are strong and careful, while another said big tech companies grew with venture capital, not bank loans.
Shreyans Jain, co-founder of Y Combinator-backed Manicule, called India a 'credit-starved country' in a widely shared post on X, criticising Indian banks for being overly cautious about loans.
Jain said US banks and credit unions offer large loans based on a decent credit score and short credit history, while Indian banks demand an extensive checklist of documents.
He argued that India's cautious approach to lending limits the emergence of globally successful companies such as Anthropic or Foxconn.
One X user supported Jain, saying he received his first $2 million credit line in the US in 2011 even without a social security number.
Other users defended Indian banks, citing conservative lending and loan defaults, while another said tech giants were built through venture capital rather than bank loans.
- Who
- Shreyans Jain, co-founder of Y Combinator-backed Manicule, along with X users who responded to his post
- What
- Jain criticised Indian banks for being overly cautious about loans, calling India a 'credit-starved country' and comparing US and Indian lending practices
- When
- The post was made on X on a Tuesday; the specific date is not stated
- Where
- On X (formerly Twitter), regarding banking and credit in India and the United States
- Why
- Jain argues that India's cautious lending approach and low banking risk tolerance limit the emergence of globally successful companies
Critics of Indian lending practices
Defenders of Indian banking system
Bank risk tolerance
Critics of Indian lending practices
Indian banks are too cautious, demand excessive documentation and reject small loans; they should take measured, calculated risks like US banks to support borrowers.
Defenders of Indian banking system
India's conservative lending structure keeps the banking system strong and prevents high NPA levels; there is no need to emulate the West at every juncture.
What builds global companies
Critics of Indian lending practices
Without adequate credit, India cannot produce globally successful companies like Anthropic or Foxconn; a credit-starved country won't succeed on the world stage.
Defenders of Indian banking system
Bank loans don't build tech giants; major companies like Google, Amazon and Anthropic were built through venture capital and corporate equity investments.
- Critic
- Shreyans Jain, co-founder of Y Combinator-backed Manicule
- Core claim
- India is a 'credit-starved country' with zero banking risk tolerance
- US loan requirements
- Decent credit score and short credit history
- Indian loan requirements
- Good credit score, long credit history, ITR, bank statements, CA-approved net worth statement, business balance sheets and business tax returns
- Platform
- X (formerly Twitter)
- Public reaction
- Mixed opinions, with users both agreeing and disagreeing with Jain
- Cited example
- A user said he received a $2 million US credit line in 2011 without a social security number
- Context
- Public sector banks recently posted record FY26 profit with bad loans at historic low